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HomeMy WebLinkAbout8.1 Energy Efficiency and Infrastructure Improvement Projects (2)STAFF REPORT CITY COUNCIL Page 1 of 6 Agenda Item 8.1 DATE:June 1, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Energy Efficiency and Infrastructure Improvement Projects Prepared by: Laurie Sucgang, City Engineer EXECUTIVE SUMMARY: The City Council will consider the implementation of energy efficiency and related infrastructure improvement projects. The City Council will also consider authorizing Staff to explore funding for the projects, which may include bond issuance or other financing, which would be brought back to the City Council for final approval. STAFF RECOMMENDATION: Receive a report summarizing the recommended Energy Efficiency and Infrastructure Improvement Projects resulting from the Investment Grade Audit conducted by Willdan Energy Solutions and provide direction to Staff on project implementation and the exploration of project funding. FINANCIAL IMPACT: As approved in the 2020-2025 Capital Improvement Program (CIP), there is approximately $2,445,000 allocated towards various projects that include all or portions of the energy efficiency projects presented in this report: Citywide Energy Improvements Project (CIP No. GI0121), Resiliency and Disaster Preparedness Improvements Project (CIP No. GI0221), Dublin Ranch Street Light Improvements Project (CIP No. ST0417), Solar Photovoltaic Canopies at The Wave (CIP No. GI0321), and the Library Tenant Improvements Project (CIP No. GI0002). On November 17, 2020, the City Council approved a design-build energy savings contract with Willdan Energy Solutions, to prepare an Investment Grade Audit (IGA) that includes proposed construction projects that will achieve energy savings and facility improvements. If the City Council chooses to proceed with construction of any of the energy efficiency projects, there is no cost for the IGA. If the City Council opts to forgo any of the construction projects, the City will be subject to pay $125,000 for the engineering and design services completed during the IGA phase. The total cost of the projects proposed through the IGA process is approximately $21,226,500. If 1415 Page 2 of 6 all projects are constructed, there is a potential annual savings of $693,900 and a lifetime savings (25 years) of $25,900,000. Taking into account the $2,445,000 of funding within the CIP, approximately $18,800,000 of additional funding is necessary to construct all the projects. Options for funding the projects are presented in the Funding and Financing Options section near the end of the Staff Report. DESCRIPTION: Background In the last several years, the City has taken steps toward increasing resiliency to become better prepared for emergency events (such as PG&E’s Public Safety Power Shutoff events in October of 2019 and 2020), and more recently, to meeting its Climate Action Plan goals and addressing core infrastructure needs. Specifically, the City has taken the following actions: On June 9, 2020 the City Council adopted the Five-Year Capital Improvement Program (Resolution No. 54-20) which included the Resiliency and Disaster Preparedness Improvements project, Citywide Energy Improvements project, and the Solar Photovoltaic Canopies at The Wave project. On September 15, 2020 the City Council adopted the Climate Action Plan 2030 and Beyond (Climate Action Plan), which identified Dublin’s plan to significantly reduce carbon emissions by 2030 and the goal of reaching carbon neutrality by 2045. In response to the State law transitioning California’s transportation sector to zero emissions by 2035 (Executive Order N-79-20 of September 2020), Staff has been developing a plan to transition the City’s fleet of internal combustion engine vehicles to battery-electric vehicles and looking for opportunities to install infrastructure for electric vehicle charging for the fleet vehicles. On November 17, 2020 the City Council approved a design-build energy savings contract with Willdan Energy Solutions, to prepare an Investment Grade Audit (Staff Report included as Attachment 1). Investment Grade Audit The Investment Grade Audit (IGA) prepared by Willdan provides an in-depth analysis of the financial aspects of energy savings and the return on investment from potential changes or upgrades to City facilities that are in alignment with resiliency goals, as well as getting the City closer to meeting its Climate Action Plan goals and addressing core infrastructure needs. The project is separated into two main phases: Phase 1 is project development, which is substantially complete, and Phase 2 is implementation of selected projects. This Staff Report presents the results of Phase 1, the identification of projects recommended for the implementation phase, Phase 2, and asks the City Council to provide direction on next steps. In addition to energy savings and cost savings, many of the proposed projects Staff and Willdan also considered how each project may improve the facility’s service and role in the City’s Emergency Operations Plan and the Tri-Valley Local Hazard Mitigation Plan. 1416 Page 3 of 6 Results of Phase 1 – Identified Projects The scopes of work of the identified projects generally include replacement of aged and maintenance-intensive heating, ventilation, and air conditioning (HVAC) systems, upgrading of facilities to web-based and wireless controls, converting facility and park lighting to light-emitting diode (LED) systems, installation or replacement of back-up generators, installation or upgrade of back-up systems at 23 traffic signal intersections, installation of one megawatt of solar photovoltaic (PV) systems at multiple sites, and installation of resiliency systems with batteries and generators. The summary below separates projects into three general categories and indicates if they are a (1) planned Capital Improvement Project (CIP), (2) replacement of equipment at the End of its Useful Life (EUL), (3) Energy Efficiency and Resiliency project (EE), and/or (4) an improvement or goal identified in the Climate Action Plan (CAP). The total cost in each category is the “turnkey” cost, which includes design and engineering, subcontracts, utility program and grant management as applicable, permits and fees, financing support as needed, construction management and field supervision, operations and maintenance support, measurement and verification, and guaranteed savings for the selected term. Renewable, Resiliency, and Disaster Preparedness Projects The total cost of projects in this category is approximately $12,715,500. These costs are based on actual bids from contractors solicited in February and March 2021. 1.Generator at Dublin Library – install a new generator; CIP 2.Generator at Shannon Community Center – install a new generator; CIP 3.Generator at Fire Station 16 – replace the existing generator; CIP, EUL 4.Generator at Fire Station 17 – replace existing generator; CIP, EUL 5.Generator at Fire Station 18 – replace existing generator; CIP, EUL 6.Traffic Signal Resiliency – at 23 intersections throughout the City, install new or upgrade existing battery backup units or install hydrogen fuel cell backup at major intersections; CIP, EE 7.EV Charging and Solar PV at Dublin Sports Grounds – install electric vehicle charging stations and solar photovoltaic canopies in the parking lot of the Dublin Sports Grounds for public use; EE, CAP 8.EV Charging and Solar PV at Public Safety Complex – install additional electric vehicle charging stations and solar photovoltaic canopies in the parking lot for fleet vehicle use; EE, CAP 9.Solar PV with Battery Energy Storage at Civic Center – install additional solar photovoltaic canopies in the parking lot with new battery energy storage units; EE, CAP 10.Solar PV with Battery Energy Storage at The Wave – install solar photovoltaic canopies in the parking lot with battery energy storage units; CIP, EE, CAP 1417 Page 4 of 6 11.Solar PV with Battery Energy Storage at the Corp Yard – install solar photovoltaic systems on the roof with battery energy storage units; EE, CAP 12.Solar PV with Battery Energy Storage at the Senior Center – install additional solar photovoltaic systems on the roof with new battery energy storage units; EE, CAP 13.Solar PV at Dublin Library – install solar photovoltaic systems on the roof of the Library and associated roof patching/repair to support the new solar; CIP, EE, CAP 14.Solar PV at Fire Station 17 – install solar photovoltaic systems on the roof; EE, CAP 15.Solar PV at Fire Station 18 – install solar photovoltaic systems on the roof; EE, CAP 16.Solar PV at Fallon Sports Park – install solar photovoltaic canopies in the parking lot; EE, CAP Note: Solar PV systems are sized based on the load at the facility and the smaller sites were bundled into a large project to provide an economy of scale. Otherwise, the smaller sites are too small to be economical as standalone projects. Lighting and Controls Upgrades Projects The total cost of projects in this category is approximately $6,665,000. These costs are based on actual bids from contractors solicited in February and March 2021. 17.Dublin Sports Grounds Park and Ballfield Lighting – replace inefficient metal halide lamps with modern LED solutions in the baseball fields, soccer fields, and within the sports grounds; EE 18.Emerald Glen Park Sports Court Lighting – replace inefficient metal halide lamps with modern LED solutions at the skate park, tennis courts, and basketball courts; CIP, EE 19.Fallon Sports Park Ballfield and Sports Court Lighting – replace inefficient metal halide lamps with modern LED solutions in the baseball fields, softball fields, soccer fields, tennis courts, and basketball courts; CIP, EE 20.Kolb Park and Sports Court Lighting – replace inefficient metal halide lamps with modern LED in the tennis courts and within the park; EE 21.Mape Memorial Park Lighting – improve lighting in areas near the pedestrian bridge, walkways, and within the park; CIP, EE 22.Ted Fairfield Park Lighting – improve lighting in areas near the pedestrian bridge and restroom building, and replace existing damaged light pole bases and hardware; CIP, EE 23.Alamo Creek Park Lighting – improve lighting in areas near the pedestrian bridge, parking lot, and within the park; CIP, EE 24.Interior and Exterior Building/Facility Lighting –replace inefficient lighting with modern LED at various facilities: Dublin Library, Corp Yard, Heritage Park and Museums, Shannon Community Center, Fire Station 16, Fire Station 17, Fire Station 18, and at The Wave;CIP, EUL, EE 25.Dublin Ranch District Streetlights Upgrade – replace or retrofit existing metal halide and high-pressure sodium vapor streetlights with LED technologies to reduce the total 1418 Page 5 of 6 energy costs; CIP, EE Mechanical, HVAC and Controls Upgrades Projects The total cost of projects in this category is approximately $1,846,000. These costs are based on actual bids from contractors solicited in February and March 2021. 26.Dublin Library HVAC and Controls – replace existing roof-mounted gas boiler with a new high efficiency condensing boiler, expansion tank, circulation pump, local temperature sensors, pressure gauges, valves, insulation, any necessary piping, replace all five of the existing roof-top units with new high efficiency packaged units, and wireless controls system; CIP, EUL, EE 27.Senior Center HVAC and Controls – replace eleven of the twelve existing roof-top units with new high efficiency packaged units along with modifications to the ductwork, electrical, and condensate systems, as needed, and wireless controls system; EUL, EE 28.Shannon Community Center Retro-commissioning HVAC – since the fifteen units are not yet at the end of their useful life, retro-commissioning is recommended on equipment every few years to ensure systems continue to operate optimally; EE 29.Heritage Park and Museums HVAC and Wireless Controls – replace unit at the Museum building with a high efficiency unit, corresponding thermostats, along with modifications to the ductwork, electrical, and condensate systems, as needed, and wireless controls systems at Kolb House, Sunday School Barn, Old Raymond’s Church, and the Museum; EUL, EE 30.The Wave Pool Control System Firmware Upgrade – update the firmware of the pump controller software for the chemical circulation and filtration pumps for the four bodies of water; EUL 31.Fire Station 16 Wireless Controls – since the four units are not yet at the end of their useful life and are functioning in a decent condition, the replacement can be deferred, however, installation of a wireless controls system is recommended to reduce energy consumption and costs; EE 32.Fire Station 17 HVAC and Wireless Controls – replace four units with new high efficiency units along with modifications to the ductwork, electrical, and condensate systems, as needed, and wireless controls system; EUL, EE 33.Fire Station 18 HVAC and Wireless Controls – replace two of the three units with new high efficiency units along with modifications to the ductwork, electrical, and condensate systems, as needed, and wireless controls system; EUL, EE Funding and Financing Options There are multiple options to fund public projects; three of the most common are provided below. Staff recommends doing projects in a comprehensive manner rather than piecemeal to take advantage of economies of scale, to benefit from energy and cost savings immediately, to lock in the competitive bid prices received earlier this year in anticipation of increases in construction costs, and to take advantage of low interest rates. 1419 Page 6 of 6 1.Capital Outlay - As approved in the 2020-2025 CIP, there is approximately $2,445,000 allocated towards various projects that include all or portions of certain energy efficiency projects. The total cost of the projects is approximately $21,226,500. For the City to fully fund the projects, an additional $18,871,500 would need to be allocated from the City’s General Fund Reserves. 2.Bond Issuance – The City may explore the use of a revenue bond to finance all or some of the projects. Current interest rates for a 25-year term lease-revenue bond are between 2% and 3%. Factors for consideration include the City’s credit rating, the value of holding on to cash now, and the ability for the City to make annual debt service payments. 3.Tax Exempt Lease-Purchase Agreement –Leasing energy-related improvements, especially the use of tax exempt lease-purchase agreements for energy efficient-equipment, is a common and cost-effective way for state and local governments to finance upgrades and then use the energy savings to pay for the financing cost. Leases often have slightly higher rates than bond financing but can be a faster and more flexible option. Dublin has some experience with lease financing. In 2012, the City entered into an Energy Services Contract with Chevron Energy Solutions for various energy related improvements and utilized the lease financing option, in addition to the contribution of Internal Service Fund reserves. The lease amount was $6,928,772 and the projected interest was $1,381,055. In 2018, the City opted to pay off the lease early. If the City Council chooses to proceed with construction, Staff recommends that the City Council direct Staff to further evaluate the funding options listed above and bring forward a recommendation on the best way to proceed. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) November 17, 2020 City Council Staff Report (without attachments) 1420 Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: November 17, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Contract with Willdan Energy Solutions for an Investment Grade Audit Prepared by: Laurie Sucgang, City Engineer EXECUTIVE SUMMARY: The City Council will consider approving a contract with Willdan Energy Solutions to proceed with an Investment Grade Audit to develop energy efficiency and infrastructure improvement projects. STAFF RECOMMENDATION: Adopt the Resolution Approving a Design-Build Energy Savings Performance Contract with Willdan Energy Solutions. FINANCIAL IMPACT: There is no direct financial impact associated with the agreement at this time. Fiscal impacts related to specific energy efficiency measures or infrastructure improvement projects may be brought forward to the City Council for consideration upon completion of the Investment Grade Audit (IGA). If the City does not move any projects into construction, the City will be subject to pay $125,000 for the engineering and design services completed during the IGA phase. Should the City move any projects into construction, the City will not pay for the IGA phase. All proposed projects will be evaluated to maximize savings of utility and operational costs. If applicable, the cost of these services will be paid for in accordance with the adopted annual budgets in the 2020-2025 Capital Improvement Program for the Citywide Energy Improvements Project (CIP No. GI0121) and the Resiliency and Disaster Preparedness Improvements Project (CIP No. GI0221). DESCRIPTION: The Public Works Department utilizes consultants on Capital Improvement Program CIP) projects. Services provided assist Staff in specific areas of technical and professional expertise. Consultants are solicited through an open and competitive Attachment 1 1421 Page 2 of 3 request for qualifications (RFQ) or request for proposals (RFP) process. The RFQ/RFP processes are used to identify consulting firms and contractors with the necessary background and experience to provide services and to ensure that the cost for services is competitive. The RFQ/RFPs specify that selection would be based on quality and completeness of submissions as well as a firm's experience with engagements of similar scope and complexity. RFQ/RFPs were sent to firms and vendors previously under contract with the City and to those that had expressed interest in receiving RFQ/RFPs. The RFQ/RFPs were also posted on the City's website. On September 23, 2019, the City issued an RFP for Citywide Energy Upgrades, which included the development and implementation of approved projects coming from an Investment Grade Audit (IGA). Nine proposals were received from the following firms: 1. NV5/Celtic 2. Schneider Electric 3. Partner Energy 4. SYSERCO 5. Willdan Energy Solutions 6. Information & Energy Solutions 7. EMG 8. ENGIE 9. OPTONY After review of the proposals, Staff invited ENGIE, SYSERCO, Schneider Electric, and Willdan Energy Solutions to interview and present their capabilities. Willdan Energy Solutions was selected based upon its performance at the interview, its experience and qualifications, and the qualifications of the individuals on their project team. The IGA will contain a series of Energy Savings Measures (ESMs) and Facility Improvement Measures (FIMs). The program is separated into two phases, each with several distinct elements. The first phase is project development and the second phase is implementation of the identified projects. The components of the project development phase are incorporated into the design- build energy savings performance contract and involve several stages of review of the City’s assets. The IGA will provide an in-depth analysis of City property and facilities and will be conducted to an industry standard level of detail to get competitive pricing on subcontracted work. The audits are used to identify ESMs at an investment grade level, meaning the degree of certainty in the savings associated with projects is high at the completion of this stage. The completion of the IGA will result in one or more groupings or packages/phases of ESMs and FIMs that are feasible for the City to implement. The components of the project implementation phase will be incorporated into one or more Energy Services Contracts. Staff will return to the City Council at a subsequent date to request approval of any Energy Services Contracts. 1422 Page 3 of 3 California Environmental Quality Act The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Approving a Design-Build Energy Savings Performance Contract with Willdan Energy Solutions 2. Exihibt A to the Resolution - Design-Build Contract Willdan Energy Solutions 3. Request For Proposals for Citywide Energy Efficiency Projects 4. CIP No. GI0121 and No. GI0221 1423 Item 8.1 Energy Efficiency and Infrastructure Improvement Projects City Council June 1, 2021 1424 Background •Government Code Chapter 3.2 Energy Conservation Contracts •Section 4217 –“To help implement the policy set forth in Section 25008 of the Public Resources Code, and to extend that policy to facilities of local governments, public agencies may develop energy conservation, cogeneration, and alternate energy supply sources at the facilities of public agencies…” 1425 Background •Oct 2019 and Oct 2020 –PG&E PSPS Events •June 9, 2020 –Adopted new CIP projects addressing Resiliency and Disaster Preparedness, Energy Improvements, Solar PV at The Wave •Sept 15, 2020 –Adopted Climate Action Plan for 2030 and Beyond •Sept 23, 2020 –Governor Executive Order N-79-20 setting statewide targets to reduce carbon pollution by 2035 •Nov 17, 2020 –Approved contract with Willdan to perform Phase 1 Investment Grade Audit 1426 Investment Grade Audit (IGA) •100% design & engineering w/ local subcontractor bidding •Prepare turnkey guaranteed savings construction contract Recommended Projects: $25.9M Lifetime Savings 1.Renewable, Resiliency, and Disaster Preparedness Projects 2.Lighting and Controls Upgrades Projects 3.HVAC and Controls Upgrades Projects 1427 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness Dublin Library •Solar PV on Roof •Roof repair •Back-up Generator 1428 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness Senior Center •Solar PV on Roof •Battery Energy Storage 1429 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness The Wave •Solar PV Canopies •Battery Energy Storage •Resilient Microgrid 1430 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness Dublin Sports Grounds •Solar PV Canopies •30 Public EV Chargers •42 add’l EV Capable Spaces EV Key: EV Charging Spots 2-Port L2 EVSE DCFC EV Specific Meter EV Capable Spots M New Solar PV 1431 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness Public Safety •Additional Solar PV •7 New Fleet EV Chargers •9 add’l EV Capable Spaces Existing EV Chargers 1432 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness Hydrogen Fuel Cells •11 intersections •72 hours backup Battery Backup Units •11 intersections •8 hours backup Traffic Signals 1433 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness (1 of 2) Location Scope of Work Dublin Library New generator, Solar PV on roof Shannon Community Center New generator Fire Station 16 Replace existing generator Fire Station 17 Replace existing generator, Solar PV on roof Fire Station 18 Replace existing generator, Solar PV on roof Traffic Signal –22 intersections New or upgrade Battery Backup Units or fuel cell backup Dublin Sports Grounds New Solar PV and EV Charging (public) Public Safety Complex Add’l Solar PV and EV Charging (fleet) Civic Center Add’l Solar PV and Battery Storage The Wave New Solar PV and Battery Storage, Microgrid 1434 Location Scope of Work Corp Yard New Solar PV on roof and Battery Storage Senior Center Add’l Solar PV on roof and Battery Storage Fallon Sports Park Phase 2 New Solar PV in parking lot •Total Cost for Renewable, Resiliency, and Disaster Preparedness Projects: $12,715,500 •Rebates and Incentives: $383,000 •Total Annual Savings: $384,100 IGA Recommended Projects Renewable, Resiliency, and Disaster Preparedness (2 of 2) 1435 Location Scope of Work Dublin Sports Grounds Replace lamps with LED in Baseball, Soccer, and w/in grounds Emerald Glen Park Replace lamps with LED in Skate Park, Tennis Courts, Basketball Courts Fallon Sports Park Replace lamps with LED in Baseball, Softball, Soccer, Tennis Courts, Basketball Courts Kolb Park Replace lamps with LED in Tennis Courts and w/in park Mape Memorial Park Improve lighting near ped bridge, walkways and w/in park Ted Fairfield Park Improve lighting near ped bridge, restroom, replace damaged pole bases Alamo Creek Park Improve lighting near ped bridge, parking lot and w/in park IGA Recommended Projects Lighting and Controls Upgrades (1 of 2) 1436 •Total Cost for Lighting and Controls Upgrades Projects: $6,665,000 •Rebates and Incentives: $40,500 •Total Annual Savings: $253,700 Location Scope of Work Alamo Creek Park Improve lighting near ped bridge, parking lot and w/in park Interior & Exterior Building/Facility Replace lighting with LED at: Library, Corp Yard, Heritage Park, Shannon, Fire Stations 16, 17, 18, and The Wave Dublin Ranch Streetlight District Replace or retrofit metal halide or high-pressure sodium vapor with LED; 1,574 Streetlights IGA Recommended Projects Lighting and Controls Upgrades (2 of 2) 1437 Location Scope of Work Dublin Library Replace 5 units, replace boiler, wireless controls system Senior Center Replace 11 units, wireless controls system Shannon Community Center Retro-commission existing 15 units Heritage Park and Museums Replace unit at Museum building, thermostats, wireless controls at Kolb House, Sunday School Barn, Old Raymond’s Church, Museum The Wave Pool control system firmware upgrade IGA Recommended Projects Mechanical, HVAC, and Controls Upgrades (1 of 2) 1438 •Total Cost for Mechanical, HVAC, and Controls Upgrades Projects: $1,846,000 •Rebates and Incentives: $14,500 •Total Annual Savings: $56,100 Location Scope of Work Fire Station 16 Wireless controls system Fire Station 17 Replace 4 units, wireless controls system Fire Station 18 Replace 2 units, wireless controls system IGA Recommended Projects Mechanical, HVAC, and Controls Upgrades (2 of 2) 1439 •Total Cost for ALL Projects: $21,226,500 •Total Rebates and Incentives: $438,000 •Total Annual Savings: $693,900 $25.9M Lifetime Savings Options: 1.Capital Outlay: $2,445,000 currently approved in CIP; need add’l $18,871,500 2.Bond: 2-3% interest rate, 25-year term 3.Tax Exempt Lease-Purchase Agreement Funding and Financing 1440 Capital Outlay •$2,445,000 currently approved in CIP •$18,871,500 additional needed •Citywide Energy Improvements: $517,420 •Resiliency and Disaster Preparedness: $703,095 •Solar PV Canopies at The Wave: $168,150 •Library Tenant Improvements: $250,000 •Dublin Ranch Street Light: $806,335 Funding and Financing 1441 Bond Issuance •Revenue bond –all or some of the projects •2-3% current interest rates •25-year term •City’s credit rating •Value of holding onto cash •Ability to make annual debt service payments Funding and Financing 1442 Tax Exempt Lease-Purchase Agreement •Slightly higher rates than bond financing •Can be faster and more flexible •City experience -2012 Funding and Financing 1443 Staff Recommendation •Receive the Report summarizing the recommended projects •Provide Direction to Staff on the Financing and Funding Options Staff will return July 20 with a Construction Contract and Financing Plan 1444 Thank You 1445